Vauld do not rush to return money to customers
2023.01.17 12:03
Vauld do not rush to return money to customers
By Tiffany Smith
Budrigannews.com – A Singapore court extended the creditor protection granted to the troubled crypto lending platform Vauld. Before February 28, the business ought to devise a strategy for revival.
Vauld has been given more than a month to conclude negotiations with one of two digital-asset fund managers to take over executive control of the tokens stuck on its platform, as Bloomberg reported on January 17. It appears that the company’s claim that the negotiations have reached the “advanced stage” was accepted by the Singapore high court.
The platform stopped letting its 800,000 customers withdraw money in July 2022 because of bad market conditions and an unprecedented $200 million in withdrawals in two weeks. It already received a three-month moratorium in August 2022 to develop a plan for the business’s restructuring and achieve a better outcome for its creditors. The judge at the time turned down the company’s request for a protection period of six months because he was concerned that a longer moratorium “wouldn’t get adequate supervision and monitoring.”
It became clear from the beginning of the first moratorium that Nexo, a crypto lender with headquarters in Switzerland, intended to acquire Vauld with all of its assets. Vauld, on the other hand, denied any possibility of this deal following the police raid on Nexo’s own office in Bulgaria.
That isn’t the first time the authorities in Singapore have shown that they are willing to let struggling crypto companies fix their problems. In August 2022, Zipmex, a significant Singapore-based platform, was granted a three-month moratorium to resolve liquidity issues.
However, the country’s central bank has proposed banning digital payment token service providers from providing customers with “any credit facility,” including fiat and cryptocurrencies, for crypto lending.
